I think the CEO said it all, when referring to the share price...

I think the CEO said it all, when referring to the share price movements. People got carried away.

I think the initial growth phases will be a much slower burn than most people have/had predicted and possibly more expensive.

While still in this initial growth phases the company have to keep investing capital to build out capacity to grow revenue. On top of this due to the scale, the fixed costs are higher/more evident at these low occupancy ratio's. Initially that scale acts as a bit of a brake, but will be the money maker in the long run.

It's similar to the idea of a plane, you need to sell the first 80% of seats just to break even on costs, the seats after that are where you make your profit. With profit getting exponentially better the more you fill.

i.e. I think its foolish too expect such incredible growth early on.

Its also important to be realistic about how big an influx of customers NextDC is going to have initially. Most companies already serviced by other means are likely to be already locked into longer contracts/conservative(slower to move). Also I would say there is some significant competition in the market.

The company is exercising some flexibility in regards to capital by fitting out in stages, but the initial footprint is still very capital intensive.